Technology | Media | Telecommunications

Tuesday, February 26, 2008

Broadband Multimedia Advertising Platforms

It certainly isn't going to be business as usual within the American advertising sector. New multimedia platforms in the U.S. will capture $12.6 billion in advertising revenue by 2012, according to the latest market study by Parks Associates.

Broadband multimedia advertising, the focus of the expected Writers Guild of America resolution, will account for more than $6.6 billion of that total.

Mobile infotainment services follow closely with more than $5 billion, and non-linear TV services like video-on-demand (VoD) and digital video recorders (DVR) will contribute more than $900 million in ad revenue for U.S. TV service providers.

"The floodgate is open, and the deluge of ad spending to these new platforms is irreversible," says Harry Wang, Senior Analyst, Parks Associates. "There must be interest alignment among major stakeholders to avoid frictions like the Writers Guild strike that hinder content flow to these new platforms."

According to the report, audience target-ability and campaign accountability are driving advertiser interest in these new multimedia platforms. Innovations in ad formats and improvements in ad inventory management further boost the appeal of these new media to brand advertisers.

"The next five years will be an exhilarating period, both for technology vendors who bring in innovation and for publishers who balance audience reach with target precision," Wang adds.

"New Advertising Platforms and Technologies" is Parks Associates' latest research report on the digital advertising industry. It highlights new media trends in consumers' changing media consumption habits, shifting content distribution strategies from media conglomerates, adoption of new ad technologies from publishers, and advertisers' growing appetite for effective and accountable media platforms.